How should I setup a pre-purchase inspection? Is a “fresh annual” good enough?
I suggest that anyone planning to buy, negotiate the deal with the seller
as follows:
Seller offers plane as in airworthy condition with no squawks for $50K. Buyer likes plane, and agrees to pay $50K subject to and upon passing inspection to verify aircraft’s condition.
To keep seller honest, seller agrees to pay for any squawks found that are not on the list of “exceptions” given to the buyer at time of signing price agreement.
Since buyer is wanting extensive inspection, buyer pays for mechanic of choice to be the nit pickiest SOB on the planet and find every discrepancy.
After inspection the list of discrepencies are compared. Seller pays for any that are not on his list, and buyer pays for ones that are.
This way the seller represents the airplane honestly, or has to pay out of his asking price to make good on his negligence. Buyer pays seller’s negotiated asking price without quibble once inspection is done. To help prevent disputes it is often helpful to have the plane signed over to the escrow service and the funds on deposit PRIOR to the inspection.
Those that buy a plane with a “fresh annual” are setting themselves up for big surprises in 12 months. You want to know NOW before the $$$ changes hands what the true condition of the plane is.
So. having re-read this, I add, that this does not mean that you must agree to pay the price as advertised in TAP, rather that you look it over, and the seller and buyer agree based on the buyer’s inspection on a purchase price. This is the time in which the seller must reveal everything that is wrong with the plane, and the buyer proves his good faith by transferring the money into escrow.
The signed agreement lists what is wrong and the buyer accepts these items at the negotiated price. Anything else that is discovered is either dicounted off the price, or paid for by the seller.
Now with the above situation do you want the seller’s mechanic (who also happens to be his Brother-in-Law) to be your inspector? I think not. Even if it is just Joe from across the field at the other FBO, you want someone who is not attached to the seller. Why not hire your favorite A&P to join you on a little X-C adventure? When one considers the magntude of the investment an aircraft is for most people, it just makes sense to check it out thoroughly, and who better then your favorite A&P? Why NOT do it at the seller’s site? That way if your man says it needs “X” his man can look at it on the spot and a concensus can be reached. Remember he’ll be just as suspect of your inspector as you should be of his.
So it cost you $1,000 in mechanic’s time and airfare to drag him along. What’s that compared to the horror stories we’ve all heard about first annuals after purchase? And what’s the absolute worst that can happen? You can spend $1,000 for the mechanic to come with you and have him tell you that he’d not take that rusty bucket of bolts plane for free? OK, so now your $1,000 “investment” has saved you untold thousands in repair and who knows what heartache and remorse over a bad purchase. Sounds like it is worth the money every time.
If all was as it should be, none of the above would be needed. But in the real world, its Caveat Emptor all the way.
Bob Steward A&P IA
Musketeers 88J & 32W